[ET Net News Agency, 28 April 2020] J.P. Morgan lowered its target price for Sands
China (01928) to HK$41.5 from HK$45 and maintained its "overweight" rating.
The research house said Sands still offers a defensive investment opportunity, despite a
temporary (which JPM believes) dividend cut. It looks at Sands as the best way to play the
structural mass story given its outsized exposure, as well as unparalleled dominance in
mass with ample room (it controls the majority of casino hotel rooms in Macau) and
powerful clustering.
Moreover, JPM thinks the market underappreciates potential from Sands China's growth
projects, which are scheduled to open within the year (Four Seasons Grand Suites in 2Q and
the Londoner suites & hotels in 2H). JPM thinks they can generate some of the highest ROIC
in Macau and work as a "growth optionality" for the stock, given seemingly low investor
expectations. (KL)